SuperTank was unanimously selected over HeavyTank, which had a price tag of $23M per hull with an O&M cost of $1.6M per year.

The Prime Contractor's bid for SuperTank indicated the Army would need to budget $30M per vehicle, with O&M costs projected to be $1.2M per year.

David believes that the $.4M in annual O&M savings is worth the added $7M investment.

Nevertheless, being the dedicated analyst you are, you offered to do a sensitivity analysis on these two "deltas" (to vary up to +/-30%).

The study period for this vehicle is 30 years, after which time the Army expects the entire fleet will be replaced by SuperTank II.

Assume neglible salvage value and a MARR of 3.0%.